Does the proposed Myer - David Jones merger have any real benefits for boosting sales?
According to the latest findings from Roy Morgan Research, the two retailers may not see benefits from each other's customers.
This is because there is already a substantial amount of cross-shopping between the two stores.
The findings reveal Myer attracted approximately 5.8 million customers aged 14 and over throughout 2013.
David Jones brought in just over half that number at 3.4 million.
However, taking crossover customers into consideration, this does not add a great deal to the overall combined figure.
This is especially true from Myer’s perspective, as three quarters (2.5 million) of David Jones’ 3.4 million customers also shopped at Myer last year.
Of more potential benefit to Myer is the fact that a typical David Jones shopper spends on average $195 at David Jones in any given four weeks, compared to a typical Myer shopper, who spends $165 at Myer in the same period.
Roy Morgan Research group account manager of consumer products Warren Reid said the merger might not beenfit customer numbers.
"While a merger between Myer and David Jones may result in efficiency gains such as store rationalisation, logistical benefits, increased buying power and even savings in advertising budget, the question remains as to whether customer numbers and average spend can be grown.
“A merger may provide an opportunity for David Jones to grow its customer profile among the younger and more frequent shoppers that Myer tends to attract.
"Currently, David Jones appeals to more mature, affluent shoppers who buy more expensive products — hence their higher spend at the store in an average four-week period."